Accounting Policies

POLICY TITLE:

Nonresident Alien (NRA) - Tax Compliance

POLICY NUMBER:

PYPL 03

DATE ISSUED:

January 1, 1996

DATE REVISED:

The passage of the Tax Reform Act of 1986 imposed certain withholding and reporting obligations on institutions making compensation and scholarship/fellowship payments to non United States citizens. It is the responsibility of the Payroll Office to collect the necessary information to allow for the appropriate tax treatment.

An NRA employee may be exempt from certain taxes based upon a tax treaty between the U.S. and the employee's country. It is our intent to allow exemptions based upon tax treaties whenever possible, provided the employee files the necessary information with the Payroll Office annually.

Additionally, there may be withholding requirements on scholarship/fellowship payments to NRA's as well as on any payments made to NRA independent contractors.